Johnson & Johnson Shares Rise On Strong Guidance

Johnson & Johnson (NYSE: JNJ) on Tuesday reported first-quarter earnings that beat analysts’ estimates. The health-care giant also raised its guidance for the year as strong sales of its pharmaceuticals division.

The company said that net income fell to $4.29 billion, or $1.54 a share, from $4.32 billion, or $1.53 a share, a year earlier. Excluding certain items, earnings were $1.68 a share for the quarter ended in March. The result topped analysts’ estimates. Analysts surveyed by S&P Global Market Intelligence had projected earnings of $1.65 a share.

Thanks to strong sales in pharmaceutical unit, the New-based company raised its sales guidance for 2016 to $71.2 billion to $71.9 billion, a little higher than the previous guidance of $70.8 billion to $71.5 billion.

The company also planed to trim its medical devices unit. The company said in January to cut about 3,000 jobs in this unit, representing 4 to 6 percent of total positions.

“Our pharmaceuticals business continues to deliver impressive levels of growth, we have steady improvement in our consumer business, and we are seeing momentum in our medical-devices businesses, all of which are fueling our optimism for the full year ahead,” Company’s Chief Executive Alex Gorsky said.

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